These lessons cover the Profile of the Retailing Industry. After completing these lessons you should be able to:
Lesson Objectives:
Describe the characteristics of the retail industry
Recognize the ways consumers benefit from retail
Describe the economic benefits of the retail industry
Explain how the retail industry benefits society
Describe the role retail plays in the supply chain
List the functional areas of retail businesses
Identify how retailers provide utility through products
Lesson 1
Lesson 2A
Lesson 2B
Key Terms
Retail: business of exchanging goods and services for personal, family, or household use Goods: tangible products that can be touched, such as food and clothing Services: activities performed for the benefit of others, usually for a fee, such as repairing a car or giving a manicure Retailer: business that offers goods to or provides services for individual consumers Business-2-consumer: retailer that sells to consumers Consumer: person who buys uses products or services; also called an end user. Competition: act or process of trying to win something, such as a customer's business Standard of Living: standard of material comfort as measured by the goods, services, and luxuries available to people; quality of life Economic benefits: gains that can be measured in financial terms Gross Domestic Product (GDP): market value of all goods and services produced within a country during a given period of time; one measure of a country's economic health Free-enterprise economic system: allows businesses to compete with limited government intervention; also called free market Revenue: amount of money a company generates from sales during a specific period Profit: amount by which revenue from sales exceeds the costs of making and selling a product Supply: amount of product retailers are willing to offer, or the overall quantity of merchandise available Demand:amount of merchandise required to satisfy customers' buying needs Corporate Social Responsibility (CSR): when a business is not only concerned with its own profits, but also acts with the welfare and interests of society in mind Philanthropy: Action that contributes to the improvement or the welfare of others Supply chain: businesses, people, and activities involved in creating products and delivering them to end users Channel of Distribution: path that goods take through the supply chain from the producer to the consumer Supply chain management: process of coordinating the manufacturers, wholesalers, agents, and retailers to get products into the hands of consumers Wholesaler: purchases in large quantities directly from manufacturers Intermediary: positioned between the manufacturer and the consumer in the supply chain; also called the middleman NAICS: North American Industry Classification System; a governmental system developed by the U.S., Canada, and Mexico used to classify businesses and collect economic statistics Merchandising: selecting and buying products to be resold to customers Operations: day-to-day activities necessary to keep a business up and running Promotion: all of the communication techniques sellers use to inform or motivate people to buy their products Finance: activity involved in controlling and managing money and other business assets Human Resources: managing employees and looking out for their general welfare Information Technology (IT): all forms of technology used to create, store, exchanges, and analyze various types of digital information Utility: attribute that makes a business or product capable of satisfying a need or a want; defines how or why something is useful
Important Concepts for These Lessons
Retail provides goods and services for the end user, or consumer, Retailers provide convenience goods, shopping goods, and specialty goods to meet those needs and wants.
Through retail, consumers reap the benefits of competitive prices, enhanced products, unique shopping experiences, an the potentials of a positive standard of living.
Economic benefits of retails for the U.S. include increased GDP. employment for its citizens, and taxes to run the government.
Retailing provides socials benefits, which help to better society or a community. Being socially responsible means behaving with sensitivity to social, economic, and environmental issues.
Retailers are an important intermediary in the supply chain, Through direct and indirect channels, product makes its way from the manufacturer tot he consumer.
NAICS codes help distinguish retailers based on the product or services they offer.
The functional areas of retail exist to best serve customers. The universal functional areas of retail are merchandising, operations, promotion, finance, human resources, and information technology (IT).
Utility defines how or why something is useful. The four basic types of utility are time. place, form, and possession.
Lesson Objectives:
Lesson 1
Lesson 2A
Lesson 2B
Key Terms
Retail: business of exchanging goods and services for personal, family, or household useGoods: tangible products that can be touched, such as food and clothing
Services: activities performed for the benefit of others, usually for a fee, such as repairing a car or giving a manicure
Retailer: business that offers goods to or provides services for individual consumers
Business-2-consumer: retailer that sells to consumers
Consumer: person who buys uses products or services; also called an end user.
Competition: act or process of trying to win something, such as a customer's business
Standard of Living: standard of material comfort as measured by the goods, services, and luxuries available to people; quality of life
Economic benefits: gains that can be measured in financial terms
Gross Domestic Product (GDP): market value of all goods and services produced within a country during a given period of time; one measure of a country's economic health
Free-enterprise economic system: allows businesses to compete with limited government intervention; also called free market
Revenue: amount of money a company generates from sales during a specific period
Profit: amount by which revenue from sales exceeds the costs of making and selling a product
Supply: amount of product retailers are willing to offer, or the overall quantity of merchandise available
Demand: amount of merchandise required to satisfy customers' buying needs
Corporate Social Responsibility (CSR): when a business is not only concerned with its own profits, but also acts with the welfare and interests of society in mind
Philanthropy: Action that contributes to the improvement or the welfare of others
Supply chain: businesses, people, and activities involved in creating products and delivering them to end users
Channel of Distribution: path that goods take through the supply chain from the producer to the consumer
Supply chain management: process of coordinating the manufacturers, wholesalers, agents, and retailers to get products into the hands of consumers
Wholesaler: purchases in large quantities directly from manufacturers
Intermediary: positioned between the manufacturer and the consumer in the supply chain; also called the middleman
NAICS: North American Industry Classification System; a governmental system developed by the U.S., Canada, and Mexico used to classify businesses and collect economic statistics
Merchandising: selecting and buying products to be resold to customers
Operations: day-to-day activities necessary to keep a business up and running
Promotion: all of the communication techniques sellers use to inform or motivate people to buy their products
Finance: activity involved in controlling and managing money and other business assets
Human Resources: managing employees and looking out for their general welfare
Information Technology (IT): all forms of technology used to create, store, exchanges, and analyze various types of digital information
Utility: attribute that makes a business or product capable of satisfying a need or a want; defines how or why something is useful
Important Concepts for These Lessons